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Loans (Tables)

6 Months Ended

Jun. 30, 2021

The following is a summary of total loans:


	June 30,		December 31,
(Dollars in thousands)	2021		2020
Loans:
Construction and land development ⁽¹⁾	$	1,947,646	$	1,890,846
Commercial non-owner occupied⁽³⁾		6,285,808		6,152,246
Commercial owner occupied real estate		4,895,189		4,832,697
Consumer owner occupied ^{(2, 3)}		3,549,330		3,682,667
Home equity loans		1,199,362		1,292,141
Commercial and industrial		4,440,261		5,046,310
Other income producing property⁽³⁾		808,302		854,900
Consumer		897,083		894,334
Other loans		10,097		17,993
Total loans		24,033,078		24,664,134
Less allowance for credit losses		(350,401)		(457,309)
Loans, net	$	23,682,677	$	24,206,825

(1)

Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans.

(2)

Consumer owner occupied real estate includes loans on both 1-4 family owner occupied property, as well as loans collateralized by 1-4 family owner occupied property with a business intent.

(3)

As a result of the conversion of legacy CenterState’s core system to the Company’s core system completed during the second quarter of 2021, several loans were reclassified to conform with the Company’s current loan segmentation, most notably residential investment loans which were reclassed from Consumer Owner Occupied to Other Income Producing Property, and some multi-family loans that were reclassified from Other Income Producing Property to Commercial Non-Owner Occupied. Prior period loan balances presented above were revised to conform with the current loan segmentation.

Schedule of credit risk profile by risk grade of loans

The following table presents the credit risk profile by risk grade of commercial loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of June 30, 2021	2021	2020	2019	2018	2017	Prior	Revolving	Total
Construction and land development
Risk rating:
Pass	$239,413	$448,306	$372,639	$74,918	$28,630	$67,812	$75,705	$1,307,423
Special mention	—	22,367	2,753	583	1,638	3,743	492	31,576
Substandard	376	1,622	2,377	427	590	3,440	369	9,201
Doubtful	—	—	—	—	—	7	—	7
Total Construction and land development	$239,789	$472,295	$377,769	$75,928	$30,858	$75,002	$76,566	$1,348,207

Commercial non-owner occupied
Risk rating:
Pass	$669,540	$829,779	$1,022,515	$766,938	$581,521	$1,683,052	$99,263	$5,652,608
Special mention	10,307	40,607	61,898	105,146	45,641	150,085	27	413,711
Substandard	611	292	86,084	16,052	31,392	85,012	—	219,443
Doubtful	—	—	—	—	—	46		46
Total Commercial non-owner occupied	$680,458	$870,678	$1,170,497	$888,136	$658,554	$1,918,195	$99,290	$6,285,808

Commercial Owner Occupied
Risk rating:
Pass	$384,233	$801,899	$962,111	$654,487	$527,857	$1,283,611	$80,560	$4,694,758
Special mention	3,212	6,062	4,412	12,070	14,619	70,757	81	111,213
Substandard	2,761	3,737	9,801	2,924	18,095	51,840	34	89,192
Doubtful	—	1	—	—	—	25	—	26
Total commercial owner occupied	$390,206	$811,699	$976,324	$669,481	$560,571	$1,406,233	$80,675	$4,895,189

Commercial and industrial
Risk rating:
Pass	$1,218,098	$1,211,954	$448,298	$322,304	$213,355	$262,198	$711,366	$4,387,573
Special mention	2,179	2,399	975	1,428	6,205	5,776	6,052	25,014
Substandard	510	2,802	754	4,580	4,978	5,476	8,532	27,632
Doubtful	—	—	2	2	3	34	1	42
Total commercial and industrial	$1,220,787	$1,217,155	$450,029	$328,314	$224,541	$273,484	$725,951	$4,440,261

Other income producing property
Risk rating:
Pass	$45,814	$87,126	$82,371	$91,073	$67,379	$139,784	$59,066	$572,613
Special mention	914	2,312	1,243	1,131	444	15,070	211	21,325
Substandard	470	700	560	506	365	12,840	47	15,488
Doubtful	—	—	—	—	—	6	—	6
Total other income producing property	$47,198	$90,138	$84,174	$92,710	$68,188	$167,700	$59,324	$609,432

Consumer owner occupied
Risk rating:
Pass	$897	$6,726	$2,861	$187	$70	$2,144	$14,905	$27,790
Special mention	1,248	115	2,472	86	—	7	100	4,028
Substandard	—	102	241	—	—	316	—	659
Doubtful	—	—	—	1	—	145	—	146
Total Consumer owner occupied	$2,145	$6,943	$5,574	$274	$70	$2,612	$15,005	$32,623

Other loans
Risk rating:
Pass	$10,097	$—	$—	$—	$—	$—	$—	$10,097
Special mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Doubtful	—	—	—	—	—	—	—	—
Total other loans	$10,097	$—	$—	$—	$—	$—	$—	$10,097

Total Commercial Loans
Risk rating:
Pass	$2,568,092	$3,385,790	$2,890,795	$1,909,907	$1,418,812	$3,438,601	$1,040,865	$16,652,862
Special mention	17,860	73,862	73,753	120,444	68,547	245,438	6,963	606,867
Substandard	4,728	9,255	99,817	24,489	55,420	158,924	8,982	361,615
Doubtful	—	1	2	3	3	263	1	273
Total Commercial Loans	$2,590,680	$3,468,908	$3,064,367	$2,054,843	$1,542,782	$3,843,226	$1,056,811	$17,621,617


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Construction and land development
Risk rating:
Pass	$457,425	$410,075	$127,187	$79,345	$41,018	$52,889	$15,502	$1,183,441
Special mention	20,912	5,668	707	1,757	1,815	7,293	—	38,152
Substandard	389	2,800	763	2,087	201	3,669	—	9,909
Doubtful	—	—	—	—	—	8	—	8
Total Construction and land development	$478,726	$418,543	$128,657	$83,189	$43,034	$63,859	$15,502	$1,231,510

Commercial non-owner occupied
Risk rating:
Pass	$838,646	$1,108,164	$878,172	$677,803	$723,745	$1,253,710	$58,021	$5,538,261
Special mention	42,492	76,890	111,466	44,790	38,983	131,015	—	445,636
Substandard	1,351	49,662	7,497	27,224	39,424	43,187	—	168,345
Doubtful	—	—	—	—	—	4	—	4
Total Commercial non-owner occupied	$882,489	$1,234,716	$997,135	$749,817	$802,152	$1,427,916	$58,021	$6,152,246

Commercial Owner Occupied
Risk rating:
Pass	$804,895	$957,412	$719,111	$601,471	$455,065	$1,041,668	$42,239	$4,621,861
Special mention	6,993	15,984	13,021	14,457	13,597	48,775	21	112,848
Substandard	5,729	4,185	4,690	20,122	15,093	48,127	36	97,982
Doubtful	1	—	—	—	—	5	—	6
Total commercial owner occupied	$817,618	$977,581	$736,822	$636,050	$483,755	$1,138,575	$42,296	$4,832,697

Commercial and industrial
Risk rating:
Pass	$2,723,320	$595,310	$450,238	$308,442	$223,532	$419,555	$247,169	$4,967,566
Special mention	1,566	3,273	3,031	7,165	2,496	25,727	9,368	52,626
Substandard	347	1,070	6,202	7,718	2,808	5,723	2,240	26,108
Doubtful	—	2	1	3	3	1	—	10
Total commercial and industrial	$2,725,233	$599,655	$459,472	$323,328	$228,839	$451,006	$258,777	$5,046,310

Other income producing property
Risk rating:
Pass	$94,660	$106,282	$106,366	$82,796	$49,528	$135,696	$37,616	$612,944
Special mention	3,531	2,645	1,901	789	1,417	13,492	292	24,067
Substandard	1,071	1,046	997	264	472	16,705	65	20,620
Doubtful	—	—	—	—	—	6	—	6
Total other income producing property	$99,262	$109,973	$109,264	$83,849	$51,417	$165,899	$37,973	$657,637

Consumer owner occupied
Risk rating:
Pass	$7,590	$3,527	$356	$339	$1,076	$1,290	$15,502	$29,680
Special mention	130	3,581	249	62	—	124	338	4,484
Substandard	113	387	142	—	5	326	—	973
Doubtful	—	—	—	—	—	—	—	—
Total Consumer owner occupied	$7,833	$7,495	$747	$401	$1,081	$1,740	$15,840	$35,137

Other loans
Risk rating:
Pass	$17,993	$—	$—	$—	$—	$—	$—	$17,993
Special mention	—	—	—	—	—	—	—	—
Substandard	—	—	—	—	—	—	—	—
Doubtful	—	—	—	—	—	—	—	—
Total other loans	$17,993	$—	$—	$—	$—	$—	$—	$17,993

Total Commercial Loans
Risk rating:
Pass	$4,944,529	$3,180,770	$2,281,430	$1,750,196	$1,493,964	$2,904,808	$416,049	$16,971,746
Special mention	75,624	108,041	130,375	69,020	58,308	226,426	10,019	677,813
Substandard	9,000	59,150	20,291	57,415	58,003	117,737	2,341	323,937
Doubtful	1	2	1	3	3	24	—	34
Total Commercial Loans	$5,029,154	$3,347,963	$2,432,097	$1,876,634	$1,610,278	$3,248,995	$428,409	$17,973,530

For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots.

The following tables present the credit risk profile by past due status of consumer loans by origination year:


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of June 30, 2021	2021	2020	2019	2018	2017	Prior	Revolving	Total
Consumer owner occupied
Days past due:
Current	$531,163	$761,217	$530,378	$349,872	$311,006	$1,006,612	$17	$3,490,265
30 days past due	122	127	566	600	294	16,066	—	17,775
60 days past due	—	—	148	412	13	2,155	—	2,728
90 days past due	—	308	517	9	580	4,525	—	5,939
Total Consumer owner occupied	$531,285	$761,652	$531,609	$350,893	$311,893	$1,029,358	$17	$3,516,707

Home equity loans
Days past due:
Current	$4,561	$6,844	$6,468	$4,769	$982	$31,176	$1,137,449	$1,192,249
30 days past due	121	—	—	13	—	1,213	1,225	2,572
60 days past due	—	10	—	118	28	51	393	600
90 days past due	—	40	74	160	54	3,475	138	3,941
Total Home equity loans	$4,682	$6,894	$6,542	$5,060	$1,064	$35,915	$1,139,205	$1,199,362

Consumer
Days past due:
Current	$181,548	$211,685	$159,386	$88,607	$48,164	$174,340	$28,502	$892,232
30 days past due	15	237	112	152	435	730	37	1,718
60 days past due	—	70	182	89	12	569	2	924
90 days past due	—	73	129	342	73	1,586	6	2,209
Total consumer	$181,563	$212,065	$159,809	$89,190	$48,684	$177,225	$28,547	$897,083

Construction and land development
Days past due:
Current	$159,606	$336,762	$55,042	$16,507	$11,006	$19,995	$162	$599,080
30 days past due	—	—	—	—	—	115	—	115
60 days past due	—	—	—	82	—	12	—	94
90 days past due	—	—	39	—	11	100	—	150
Total Construction and land development	$159,606	$336,762	$55,081	$16,589	$11,017	$20,222	$162	$599,439

Other income producing property
Days past due:
Current	$13,953	$12,942	$17,881	$17,501	$19,164	$98,303	$17,932	$197,676
30 days past due	—	—	—	—	—	293	—	293
60 days past due	—	—	—	—	115	—	—	115
90 days past due	—	—	—	—	446	340	—	786
Total other income producing property	$13,953	$12,942	$17,881	$17,501	$19,725	$98,936	$17,932	$198,870

Total Consumer Loans
Days past due:
Current	$890,831	$1,329,450	$769,155	$477,256	$390,322	$1,330,426	$1,184,062	$6,371,502
30 days past due	258	364	678	765	729	18,417	1,262	22,473
60 days past due	—	80	330	701	168	2,787	395	4,461
90 days past due	—	421	759	511	1,164	10,026	144	13,025
Total Consumer Loans	$891,089	$1,330,315	$770,922	$479,233	$392,383	$1,361,656	$1,185,863	$6,411,461


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of June 30, 2021	2021	2020	2019	2018	2017	Prior	Revolving	Total
Total Loans	$3,481,769	$4,799,223	$3,835,289	$2,534,076	$1,935,165	$5,204,882	$2,242,674	$24,033,078


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Consumer owner occupied
Days past due:
Current	$759,525	$615,142	$471,224	$446,996	$351,859	$960,330	$—	$3,605,076
30 days past due	4,933	7,744	2,776	2,070	3,203	9,294	—	30,020
60 days past due	—	350	1,222	486	103	2,710	—	4,871
90 days past due	—	176	264	994	875	5,254	—	7,563
Total Consumer owner occupied	$764,458	$623,412	$475,486	$450,546	$356,040	$977,588	$—	$3,647,530

Home equity loans
Days past due:
Current	$7,654	$6,694	$7,670	$658	$398	$30,039	$1,231,510	$1,284,623
30 days past due	134	52	—	79	—	272	2,324	2,861
60 days past due	—	—	—	—	—	116	418	534
90 days past due	155	93	—	157	330	1,886	1,502	4,123
Total Home equity loans	$7,943	$6,839	$7,670	$894	$728	$32,313	$1,235,754	$1,292,141

Consumer
Days past due:
Current	$291,305	$201,330	$115,203	$62,485	$38,272	$147,101	$32,874	$888,570
30 days past due	105	473	454	224	29	1,043	23	2,351
60 days past due	68	143	93	61	37	376	47	825
90 days past due	73	195	272	185	100	1,663	100	2,588
Total consumer	$291,551	$202,141	$116,022	$62,955	$38,438	$150,183	$33,044	$894,334

Construction and land development
Days past due:
Current	$370,457	$163,728	$63,521	$18,530	$4,497	$25,399	$—	$646,132
30 days past due	6,172	3,660	161	—	2,255	184	—	12,432
60 days past due	282	—	438	—	—	—	—	720
90 days past due	—	—	—	—	—	52	—	52
Total Construction and land development	$376,911	$167,388	$64,120	$18,530	$6,752	$25,635	$—	$659,336

Other income producing property
Days past due:
Current	$13,407	$18,886	$18,991	$22,516	$15,335	$93,093	$13,209	$195,437
30 days past due	—	—	40	278	—	761	—	1,079
60 days past due	—	—	—	135	—	316	—	451
90 days past due	—	—	—	—	—	296	—	296
Total other income producing property	$13,407	$18,886	$19,031	$22,929	$15,335	$94,466	$13,209	$197,263

Total Consumer Loans
Days past due:
Current	$1,442,348	$1,005,780	$676,609	$551,185	$410,361	$1,255,962	$1,277,593	$6,619,838
30 days past due	11,344	11,929	3,431	2,651	5,487	11,554	2,347	48,743
60 days past due	350	493	1,753	682	140	3,518	465	7,401
90 days past due	228	464	536	1,336	1,305	9,151	1,602	14,622
Total Consumer Loans	$1,454,270	$1,018,666	$682,329	$555,854	$417,293	$1,280,185	$1,282,007	$6,690,604


	Term Loans
(Dollars in thousands)	Amortized Cost Basis by Origination Year
As of December 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving	Total
Total Loans	$6,483,424	$4,366,629	$3,114,426	$2,432,488	$2,027,571	$4,529,180	$1,710,416	$24,664,134

Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans

The following table presents an aging analysis of past due accruing loans, segregated by class. As noted previously, prior period loan balances presented below reflect the loan reclassifications resulting from the system’s conversion completed during the second quarter of 2021.


	30 - 59 Days		60 - 89 Days		90+ Days		Total				Non-		Total
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Accruing		Loans
June 30, 2021
Construction and land development	$	2,160	$	370	$	—	$	2,530	$	1,943,053	$	2,063	$	1,947,646
Commercial non-owner occupied		5,420		667		—		6,087		6,267,844		11,877		6,285,808
Commercial owner occupied		3,067		763		92		3,922		4,868,751		22,516		4,895,189
Consumer owner occupied		3,090		1,037		—		4,127		3,521,683		23,520		3,549,330
Home equity loans		1,493		452		—		1,945		1,187,843		9,574		1,199,362
Commercial and industrial		17,510		3,793		467		21,770		4,412,452		6,039		4,440,261
Other income producing property		1,598		3		—		1,601		801,583		5,118		808,302
Consumer		1,482		820		—		2,302		890,370		4,411		897,083
Other loans		2		4		—		6		10,091		—		10,097
	$	35,822	$	7,909	$	559	$	44,290	$	23,903,670	$	85,118	$	24,033,078
December 31, 2020
Construction and land development	$	520	$	1,142	$	—	$	1,662	$	1,886,763	$	2,421	$	1,890,846
Commercial non-owner occupied		188		372		471		1,031		6,145,745		5,470		6,152,246
Commercial owner occupied		2,900		840		—		3,740		4,802,898		26,059		4,832,697
Consumer owner occupied		1,165		3,294		34		4,493		3,649,697		28,477		3,682,667
Home equity loans		1,805		481		—		2,286		1,279,929		9,926		1,292,141
Commercial and industrial		10,979		22,089		10,864		43,932		4,993,160		9,218		5,046,310
Other income producing property		897		338		278		1,513		845,844		7,543		854,900
Consumer		1,718		818		4		2,540		885,720		6,074		894,334
Other loans		13		6		—		19		17,974		—		17,993
	$	20,185	$	29,380	$	11,651	$	61,216	$	24,507,730	$	95,188	$	24,664,134

Summary of information pertaining to nonaccrual loans by class

The following table is a summary of information pertaining to nonaccrual loans by class, including restructured loans. Prior period loan balances presented below reflect the loan reclassifications resulting from the system’s conversion completed during the second quarter of 2021.


	December 31,		June 30,		Greater than		Non-accrual
(Dollars in thousands)	2020		2021		90 Days Accruing⁽¹⁾		with no allowance⁽¹⁾
Construction and land development	$	2,421	$	2,063	$	—	$	89
Commercial non-owner occupied		5,470		11,877		—		17
Commercial owner occupied real estate		26,059		22,516		92		11,687
Consumer owner occupied		28,477		23,520		—		—
Home equity loans		9,926		9,574		—		50
Commercial and industrial		9,218		6,039		467		206
Other income producing property		7,543		5,118		—		309
Consumer		6,074		4,411		—		—
Total loans on nonaccrual status	$	95,188	$	85,118	$	559	$	12,358

(1)

– Greater than 90 days accruing and non-accrual with no allowance loans at June 30, 2021.

Summary of collateral dependent loans, by type of collateral

The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period:


	December 31,		Collateral			June 30,		Collateral
(Dollars in thousands)	2020		Coverage		%	2021		Coverage		%
Commercial owner occupied real estate
Office	$	1,076	$	1,485	138%	$	729	$	729	100%
Retail		4,849		5,490	113%		4,566		5,760	126%
Other		1,010		1,075	106%		4,824		5,490	114%
Commercial and industrial
Other		—		—			23		23	100%
Total collateral dependent loans	$	6,935	$	8,050		$	10,142	$	12,002

Schedule of restructured loans segregated by class and type of concession

The following table presents loans designated as TDRs segregated by class and type of concession that were restructured during the three and six month periods ending June 30, 2021 and 2020.


	Three Months Ended June 30,
	2021					2020
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
	Number	Amortized		Amortized		Number	Amortized		Amortized
(Dollars in thousands)	of loans	Cost		Cost		of loans	Cost		Cost
Interest rate modification
Commercial owner occupied	—	$	—	$	—	1	$	1,215	$	1,215
Total interest rate modifications	—	$	—	$	—	1	$	1,215	$	1,215
Term modification
Consumer owner occupied	—	$	—	$	—	3	$	475	$	475
Total term modifications	—	$	—	$	—	3	$	475	$	475
	—	$	—	$	—	4	$	1,690	$	1,690


	Six Months Ended June 30,
	2021					2020
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
	Number	Amortized		Amortized		Number	Amortized		Amortized
(Dollars in thousands)	of loans	Cost		Cost		of loans	Cost		Cost
Interest rate modification
Construction and land development	—	$	—	$	—	2	$	102	$	102
Commercial owner occupied	—		—		—	1		1,215		1,215
Consumer owner occupied	—		—		—	1		29		29
Commercial and industrial	—		—		—	6		652		652
Other income producing property	1		298		298	1		340		340
Total interest rate modifications	1	$	298	$	298	11	$	2,338	$	2,338
Term modification
Consumer owner occupied	—	$	—	$	—	4	$	527	$	527
Home equity loans	—		—		—	1		51		51
Commercial and industrial	1		40		40	1		276		276
Total term modifications	1	$	40	$	40	6		854		854
	2	$	338	$	338	17	$	3,192	$	3,192

Schedule of changes in status of loans restructured within the previous 12 months

The following table presents the changes in status of loans restructured within the previous 12 months as of June 30, 2021 by type of concession. The subsequent default noted below increased reserves on the individually evaluated loan $300,000.


	Paying Under
	Restructured Terms		Converted to Nonaccrual		Foreclosures and Defaults
	Number	Amortized	Number	Amortized	Number	Amortized
(Dollars in thousands)	of Loans	Cost	of Loans	Cost	of Loans	Cost
Interest rate modification	7	$ 6,086	—	$—	1	$300
Term modification	7	782	—	—	—	—
	14	$ 6,868	—	$—	1	$300

CSFL

Summary of Loans

Schedule of purchased loans through its acquisition of CSB


(Dollars in thousands)	June 7, 2020
Book value of acquired loans at acquisition	$	3,091,264
Allowance for credit losses at acquisition		(149,404)
Non-credit discount at acquisition		(14,283)
Carrying value or book value of acquired loans at acquisition	$	2,927,577